MCA Realty Makes $42M Industrial Buy in Las Vegas
- Aug 15, 2019
MCA Realty has acquired Equus Business Center, a 357,608-square-foot, multi-tenant industrial property in Las Vegas, in an off-market deal with a private investor for $42 million. The Irvine, Calif.-based firm plans to rebrand the seven-building industrial asset as Central Seven Commerce Center.
Dan Doherty of Colliers International and Gabe Telles and Ali Roesener of Gatski Commercial represented MCA in the transaction. Frank Gatski of Gatski Commercial represented the seller.
Located just over a mile from the Las Vegas Strip, the business center—which takes up a full block—is 89 percent occupied by a diverse mix of more than 170 tenants. Addresses at Equus include 3400 W. Desert Inn, 3110-3230 Polaris Ave. and 3401 W. Sirius Ave.
Tyler Mattox, MCA principal, said in a prepared statement that the firm plans to stabilize the rent roll and bring current rents up to market rate. He noted the net operating income on the property has already increased by more than $200,000. MCA also plans interior and exterior renovations, including new paint, landscaping and signage.
Mattox pointed to the property’s close proximity to the Strip as a benefit for the many tenants who service businesses there. He added that future developments in the region will boost growth, including the new $1.9 billion Raiders Stadium that is being built for the NFL team relocating from Oakland, Calif.
Buying and selling in Vegas
MCA has been active in the Las Vegas market since the recession, buying more than 20 properties, with a focus on multi-tenant assets. The firm currently owns more than 1.25 million square feet in the region.
The company has also been selling parts of its portfolio. Most recently, MCA sold 5945-2 W. Wigwam Ave., the final unit in its Wigwam Jones Industrial Park in the Southwest submarket of Las Vegas, for $1.1 million. The 7,182-square-foot property was one of 11 condominium units MCA acquired in 2014 for $6.4 million. With this disposition, MCA has sold the entire asset for $10.48 million.
Doherty and two Colliers International colleagues, Chris Lane and Jerry Doty, represented MCA in the transaction. Marc Magliarditi of LOGIC Commercial Real Estate also worked on the deal.
More portfolio adjustments
In February 2018, MCA sold six assets in Las Vegas for a total of $5.4 million. Five of those buildings were located in the Lamb Technology Center at 2725-2797 N. Lamb Blvd. and were sold for 2.5 million. The sixth property at 2020 Pama Lane was sold to a local manufacturer for $2.9 million after the lessee defaulted on its arrangement with MCA.
In the same month, MCA announced that the 29,988-square-foot Gibson Tech Center, a Henderson, Nev., office building acquired a year earlier, had been fully leased by PRA Group. Gibson Tech Center was one of two assets MCA had purchased in February 2017 for a total of $18.3 million. The second was Harmon Warehouse Center, a 145,491-square-foot multi-tenant industrial building in Southwest Las Vegas.
More recently, in December, MCA expanded its Southern California presence with the acquisition of a two-building multi-tenant industrial property in Escondido for $5.9 million.